Open Commodity Trading Account Online

Commodity Trading brings you the opportunity to trade in different agri and non-agri commodities. To get started, you can open commodity trading account online.

With the advent of technology, now it becomes easier to open the trading account. To open a statement, the commodity trading exchanges offer a simple and completely online process. All you have to follow the four simple steps and you can start trade without any delay.

Before getting into the details, here is a brief about what commodity trading is.

In simple terms, commodities are the basic commercial goods that include both agri and non-agri goods.

Trading in commodities comes up with a good chance for traders and investors to build and diversify their portfolio.

After or before opening a commodity trading account, to be a pro trader, you can opt for commodity trading courses in India.

Now, commodities are traded online over the commodities exchanges. They are bought and sold in a dematerialized form and do not involve actual delivery. The profit and loss settlements are made online, and the balance is transferred to the trader’s account.

Just follow the 4 simple steps to open a commodity trading account online and start trading to earn maximum profits.

In this detailed review, we are going to explain to you just that in the simplest way possible.

How to Open Commodity Trading Account?

Since the commodities are being traded online, the first requirement to become a commodity trader is to open commodity trading account online itself.

It is a Demat account which can be opened either with a bank or with a licensed stockbroker. It is advisable to open commodity trading account online with a broking company, as the brokers provide better and more services than the banks.

Also, the commodity trading account gives you the chance to trade in futures and options.

On one hand, where the futures trade gives you the right to buy or sell a particular commodity at the predetermined date in the future, options trading is where you have the right but not the obligation to trade a specific commodity on the predetermined price and date in the future.

So, if you have a better understanding of futures and options trade, then you can easily get started with the commodity trading account.

There are multiple steps in the overall process that a trader like yourself needs to follow.

In the rest of the article, we will be providing you a quick summary of each of these steps so that you are aware of how you can open commodity trading account online on your own.

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Choose a Stockbroker

So, the first critical step to open commodity trading account online is to select a suitable broking company.

To initiate your research, shortlist the broker who is registered with the commodity exchanges like MCX or NCDEX or both. This gives them the right to offer their customer to trade-in different commodities.

There are many stockbroking companies in the market, and each has its own strengths and drawbacks. The choice of the broking company is critical because it is the broking company that holds your account and execute your trades.

Of course, you have the option to use any of the trading platforms offered by the broker in order to place your trades yourself too.

The brokers also help in educating traders on commodity trading and making sound financial decisions through their recommendations.

So, if the broker itself is not well-informed and customer-savvy, the trader may end up losing a lot of money in no time.

Furthermore, while choosing a broker to open commodity trading account online, the trader must see the kind of fee they charge.

This fee varies from company to company, and there may be various types of charges like the commission (brokerage charges), platform fee, clearing fee, transaction charges, etc.

You can check out this detailed brokerage calculator to understand more about the charges.

Another factor to consider while choosing a broker is the kind of services they provide on their platform.

The platform can be checked using their free trial to see if it has all the requisites like charts, market data, research, and analysis available on their online trading platform.

Some of the most reliable and efficient full-service broking companies for commodity trading in India are Karvy Online, Angel Broking, IIFL Commodity Brokerage Charges, etc. and some of the discount broking companies are Zerodha, Upstox, Trade Smart Online, etc.

You can also go through Motilal Oswal Commodity Trading Account Opening.

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Commodity Trading Account Opening Online

After the broking company has been selected by the trader, he/she needs to fill up an application form to open commodity trading account online with the broking company.

The forms are available on the broker’s website and require information about the age, financial status, trading experience of the trader.

All this information is essential to both the trader and the broker because both are at risk with each other.

For instance, this is how a form looks like when you are looking to open a commodity trading account online:

Alternatively, you can fill up this basic form, where we will arrange a callback for you to explain how you can open a commodity trading account online:

 

With all the information you provide in the form online, the broking company assesses the financial condition, risk appetite, and personal experience of the trader through the application form.

It is essential to ensure that the trader has enough financial cushion to take care of him in case he loses his initial investment.

This is also mandated by the regulators.

In order to get ahead with the process to open commodity trading account online, There will be specific documentation required that you need to provide to the broker.

With this online application form, you may choose to upload the necessary documents as well.

The documentation required includes:

• PAN Card
• ID Proof
• Address Proof
• Canceled Cheque
• Income/Salary Statement

The broking company will also understand the trading experience the applicant has to know if he will be able to sustain the pressure of commodity trading.

So, the net worth, age, income, credit rating, and trading experience mentioned in the application form are carefully analyzed and checked by the broking company before approving to open commodity trading account online for a trader.

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In-Person Verification

Once all the information is submitted, including the application form, supporting documents, member-client agreement, and all other required documents have been submitted to the broking company, they take about 2-3 days to study the documents.

On complete verification, the broker’s team come up with the decision of whether to approve or deny the application.

If the paperwork is approved, after filling an application to open commodity trading account online with the broker, you will get the information regarding his account number, password, and other instructions.

We hope that till now, you are clear about the Commodity Trading Account Online process before we jump into the final step involved!

Deposit Commodity Trading Margin

The trader also has to deposit the initial margin money into the account as soon as the account is open.

The initial margin amount is generally 5-10% of the contract value. In addition to the initial margin, the maintenance margin also needs to be maintained by the trader in his account.

The initial margin will ensure that the trader is able to pay off in case he suffers any huge loss due to adverse price movements.

As soon as all these formalities are completed, the commodity trading account for the trader is officially opened, and the trader can start trading using that account at the same time.

Thus, the process to open commodity trading account online is simple but involves a reasonable amount of information collection, so that both parties are well aware of each other’s circumstances, financial ability, and risks.

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How to Open Commodity Trading Account in Zerodha?

As already discussed to open a commodity trading account, you need a broker. It helps you to gain a seamless trading experience.

You can open a commodity trading account with Zerodha. For this, visit the Zerodha website and click on open a Demat account.

• It will redirect you to the account opening page where you have to fill your basic details.
• Post this, upload the documents required for opening trading account like PAN Card, Aadhaar Card, Bank Details, Address Proof, etc.
• Apart from this, submit a member-client agreement on non-judicial stamp paper and income proof like Form 16 or income tax returns.

Once you open Zerodha Commodity account you can start trade without delay.

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How to Open a Commodity Trading Account in Angel Broking?

Since Angel Broking is a full-service stockbroker registered with the top commodity exchanges of India (MCX and NCDEX) thus opens a gateway for you to trade in different commodities.

Open a commodity trading account online in Angel Broking and get access to use different trading platforms that further streamline the process of trading.

To start Angel Broking commodity trading, open the account with the broker online by following a few simple steps.

• Investing in commodity trading with Angel Broking gives you the chance to diversify your portfolio.
• Apart from this, you would be able to earn a good return.
• Commodities are less volatile as compared to shares and other capital market instruments thus are less risky.

To get started visit the website.

Fill the account opening form and upload essential documents including the income proof to trade in commodity derivatives.

On verification of details, the account opens and you would be able to trade right away.

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How to Open Commodity Account in ICICI Direct?

ICICI Direct another full-service stockbroker offers competent trading platforms to its customers. However, when it comes to ICICI commodity trading, it does not offer the leverage to trade directly in commodities.

This is because the broker is not registered with the commodity exchanges of India. But, if you are having an account with the broker, you can trade in commodities indirectly through ETFs.

ETFs are the exchange-traded funds that are traded like any other stocks. It is of different types like index ETF, banking, or international ETFs or Gold ETFs.

To invest in the ETF, you either have to open a 2-in-1 account or 3-in-1 account with the firm. On opening the account, you get access to the trading apps or platform from where you can trade similarly like in other stocks.

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How to Open Commodity Trading Account in Upstox?

Upstox, a discount broker, offers you many benefits of trading in commodities. Some of them are:

It gives you access to use the trading platform like Upstox Pro where you can:

• Monitor market trends before investing in a particular commodity.
• Make a fast and flawless investment decision.
• Trade anytime and from anywhere.
• Monitor your profit easily.

In all, it gives you a seamless way to diversify your portfolio.

So, if you are interested to invest in commodities then open commodity trading account online with Upstox.

• To open the account, visit the website and click on open an account.
• Following this, fill details, and upload documents.
• On verification, the confirmation email will be sent to your registered email address.

It contains login details that you can use to login to the trading account and to the trading platform.

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How to Open Commodity Trading Account in IIFL?

IIFL is the leading stockbroker offering decent brokerage services. To get started you have to open an IIFL Commodity Trading account.

The process of opening an account is quite simple and you can easily process the application online.

• To open the account visit the IIFL website and fill basic details like name, mobile number, email address, etc.
• Following this, upload essential documents including PAN card, Aadhaar Card, etc.
• On in-person verification, the confirmation email is sent to you containing the login details and other guidelines that help you to access your trading account.

So, open a commodity trading account online with IIFL now.

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Conclusion

So, opening a commodity trading account offers you innumerable trading benefits. Get into the trade now by picking the right stockbroker.

Make sure you opt for the right platform, offering the best commodity trading strategies to trade in the commodity.

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In case you are looking to get started with Commodity Trading or investing in any other financial segment – just fill in some necessary details in the form below.

A callback will be arranged for you:

 

More on Share Market Education:

If you wish to learn more about Commodity trading or the stock market in general, here are a few reference links for you: